We recently published 10 Stocks Taking a Nosedive. Caesars Entertainment Inc. (NASDAQ:CZR) is one of the worst performers on Wednesday.
Caesars Entertainment Inc. (NASDAQ:CZR) extended its losing streak to a third straight day on Wednesday, shedding 5.17 percent to close at $23.38 apiece as investors continued to unload portfolios in gaming stocks amid growing threats posed by the surging prediction markets.
The sector has been under pressure since early this month after Robinhood Markets and Kalshi announced a jump in their trading volumes in the third quarter alone.
Robinhood said it saw 2 billion prediction contracts in the past quarter, while Kalshi’s betting volume, particularly sports betting, increased by 90 percent. The latter also gained an edge for its capability to operate in jurisdictions and age brackets currently off-limits to most gaming firms.
Kalshi earlier launched a new “build your own combo” parlay product that allows users to pair multiple contracts with a game.
The rapid rise of prediction contracts sparked sell-off across gaming stocks, including Caesars Entertainment Inc. (NASDAQ:CZR), with analysts expecting users to shift online for their betting portfolios.
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“These companies need to come out with a strategy for investors — whether it’s launching prediction markets or stepping up marketing,” investment firm Citizens was quoted as saying in a report by Bloomberg.
“Until that happens, the prediction markets present a risk,” it noted.
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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source finance.yahoo.com ’
